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Sentry Manufacturing will pay a dividend next year of $5.86 per share (D1 = $5.86). The dividend is expected to grow at a constant rate

Sentry Manufacturing will pay a dividend next year of $5.86 per share (D1 = $5.86). The dividend is expected to grow at a constant rate of 6% per year. The price of Sentry Manufacturing's stock today is $40 per share. Sentry Manufacturing's marginal tax rate is 35%. Based on the above information, the cost of equity is %. (Round to 2 decimal places)

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